The State Bank of Vietnam (SBV) organized a meeting with correspondents on January 4, 2016 to announce several substances relating to new method of exchange rate management.
The meeting under the chairwomanship of Deputy Governor Nguyen Thi Hong was attended by senior leaders of Monetary Policy Department, Foreign Exchange Management Department, Banking Supervision Agency, Credit Department, several commercial banks and correspondents.
At the meeting, Director General Bui Quoc Dung of Monetary Policy Department introduced new method of exchange rate management. Accordingly, the SBV issued Decision No.2730/QD – NHNN on December 31 to announce the central rate of VND versus USD and the cross rate of VND versus other foreign currencies.
Also at the meeting, Deputy Governor Nguyen Thi Hong and Director General of Monetary Policy Department answered many questions about the method of determining the central rate of VND versus USD, the orientations and the measures to stabilize exchange rate; the trading band of foreign currencies applied by credit institutions in line with the announced central rate; the positive effects of new method of exchange rate management on production and business of enterprises, FDI flow into Vietnam… The SBV Deputy Governor emphasized that the SBV’s point of view on exchange rate management is consistent, focusing on stabilizing forex market, appreciating VND, thereby contributing to stabilizing macro-economy and supporting economic growth at a reasonable level.
In adoption of new method of exchange rate management, the SBV still announces the VND/USD exchange rate with a proper adjustment everyday. The exchange rate shall be managed in more flexible manner in accordance with commercial and international investment background.
The SBV has strictly considered the determination and announcement of the central rate of VND versus USD to ensure the flexibility in forex management as well as the adoption of managed floating exchange rate scheme as stipulated in applicable regulations.
LH